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Monday, February 20, 2017

Daily analysis of major pairs for February 20, 2017

The EUR/JPY consolidated from Monday to Thursday and then broke out to
the downside on Friday. Price closed below the supply zone at 120.00 on Friday,
after generating a bearish signal, which may continue to hold out this week.

EUR/USD: The EUR/USD went
downwards from Monday till Wednesday and later bounced upwards. The upwards
bounce could be seen as a good opportunity to go short, although a movement
above the resistance line at 1.0750 would threaten the bearish outlook. Right
now, price seems to be going south, and further southward movement would bring
more emphasis on the bearish outlook.

USD/CHF: Here, it can be seen
that the psychological level at 1.0000 has become insignificant because price
just goes above and below it at will, while the level offers little resistance
to that play. Price went below the level at 1.0000 on Thursday and then went above
it on Friday. One would need to wait to see what price would do today.

GBP/USD: The GBP/USD moved
sideways throughout last week. However, there would soon be a serious breakout
in the market, which would most probably push it to the downside, as the
outlook on GBP pairs remains bearish for February. Bullish attempts should be
approached with caution here.

USD/JPY: This pair also went
upwards from Monday to Wednesday, and then got corrected downwards. The
downward correction remains in place; and should it go further downwards, it
would generate a bearish signal (which may become particularly strong once
price goes below the supply level at 112.50).

EUR/JPY: The EUR/JPY
consolidated from Monday to Thursday and then broke out to the downside on
Friday. Price closed below the supply zone at 120.00 on Friday, after
generating a bearish signal, which may continue to hold out this week.